The Math Behind the Pain
A $400,000 home financed at 3% in 2021 carried a $1,686 monthly principal-and-interest payment. At 6.75%, that same home now costs $2,594 per month — a 54% increase. While wages have grown, they haven’t kept pace with housing costs, pushing many potential buyers to the sidelines.
Who Today’s Borrowers Are
Lenders report a bifurcated market:
- First-time buyers relying on gift funds and down-payment assistance.
- Equity-rich sellers moving cautiously but strategically.
- Credit-sensitive borrowers exploring ARM or non-QM options.
Each requires clear communication and tailored education. Borrowers want transparency — from rate explanations to closing cost breakdowns — and they expect their lender to help them navigate trade-offs.
How Lenders Can Respond
Affordability challenges open the door for innovation.
- Highlight cost-saving programs, such as community lending and down-payment assistance.
- Leverage data tools to pre-qualify borrowers faster.
- Partner closely with title companies and agents to reduce cycle time and mitigate re-disclosures.
A streamlined experience can make the difference between an approved and withdrawn application.
As affordability pressures persist, lenders who combine empathy with operational efficiency will stand out. Realeo remains focused on empowering that borrower journey — simplifying closings, enhancing communication, and supporting lenders committed to sustainable homeownership.
